Fitch Ratings downgraded the United States' long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to "expected fiscal deterioration over the next three years," an erosion of governance and a growing general debt burden.
U.S. stock futures opened lower after the rating agency issued its downgrade, with Dow futures sliding about 100 points.
In May, the agency placed the nation's AAA rating on negative watch, blaming the debt ceiling fight.
President Joe Biden signed the debt ceiling bill on June 2, just days away from the "X-date" on June 5.
This isn't the first time a rating agency has downgraded the U.S. Standard & Poor's cut the nation's credit rating to AA+ from AAA in 2011 after Washington managed to avoid a default.
Persons:
Biden, Fitch, Washington butted, Joe Biden, Karine Jean, Pierre said, CNBC's Christina Wilkie
Organizations:
Service Police, Lafayette, Fitch, United, AAA, Dow, U.S . Standard, Washington
Locations:
Washington , DC, United States, Washington, States